Individual investors doubled in Saudi financial markets

Recent official data revealed that more than 4.7 million subscribers per capita are active in Saudi Arabia’s financial markets offerings, according to the Saudi Capital Market Authority (CMA) 2021 annual report.

The annual report says the number of individual investors in IPOs jumped 4.7 times to 815,000 investors in 2020.

The Saudi economy has recovered from the repercussions of the coronavirus pandemic and its severe impact on the global economy.

Saudi activities and sectors, namely the financial markets, recovered quickly thanks to government decisions that included numerous programs, initiatives and stimulus plans.

Electronic channels ranked first with approximately 2.3 million subscriptions, followed by bank branches which received 1.2 million subscribers, ATMs were third with 598,000 subscribers and telephone banking registered 508,000 investors.

The AMC revealed that the volume of initial public offerings in the main and alternative financial markets had tripled last year, bringing the value of listings to $8.2 billion before the surplus.

The number of applications for IPO and registration of shares on the main and parallel markets increased by 385.8% compared to the previous year to reach 34 applications.

About 41.2% of the total IPO applications were in the main market, Tadawul.

The report reveals that total revenue increased 6.2% to $440 million in 2021 from $4 million in 2020.

According to the report, revenue from the Authority’s business services and activities increased by about 10% to $35 million from $32 million in 2020.

The CMA Board and Securities Dispute Resolution Committees issued 106 sanctions against 357 breaches of rules and regulations in 2021.

The CMA pointed out that 260 sanctions have been applied against various violators, representing 73% of the total, while the rest are currently being followed up.

The annual report showed an increase in total spending of about six percent in 2021 to $207 million, from $195 million in 2020.

Public and administrative expenses fell to $41 million in 2021 from $48 million the previous year, a decline of 13.8%.

The report also notes that benefits and salaries increased 10.3% to $141 million in 2021 from $128 million in 2020.